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September 2, 2016
  • Technical sales, concerns over Egypt, and ample world supplies pushed wheat futures marginally lower this week. Chicago wheat futures, already at a ten year low, fell 10 cents to $3.73 per bushel. Kansas City wheat futures fell 3 cents to $3.87 per bushel. Minneapolis wheat futures fell 2 cents to $4.96 per bushel. Minneapolis and Kansas City wheat futures found support from healthy exports and expectations of short world supplies of higher protein milling wheat. Chicago corn futures rose 1 cent to $3.17 per bushel on strong exports, and Chicago soybean futures fell 22 cents to $9.69 per bushel.
  • Early reports from the Canadian wheat harvest indicate concerns of vomitoxin and low protein.
  • The U.S. HRS harvest is reported to be of an average protein and to be of good quality so far.
  • Egypt, the world's largest wheat buyer, announced that it was reinstating a zero tolerance policy for ergot in its wheat imports, raising uncertainity in the world market.
  • USDA's weekly Export Sales Report included net wheat sales of 279.4 TMT, for 2016/17. Sales were below trade expectations of 300.0 to 600.0 TMT. Total known outstanding sales and accumulated exports for all classes of wheat for 2016/17, through August 25, 2016, were 11.85 MMT, 18% higher than a total of 10.07 MMT last year on this date. USDA expects U.S. wheat export to reach 25.9 MMT.
  • The French agricultural ministry reported that French wheat yields are 30 percent below last year, with higher than average protein levels, and lower than average falling number and test weights.
  • Traders are becoming increasingly concerned over available exportable supplies of good quality high protein wheat. In addition to the poor quality of the European crop, reports indicate lower than average protein levels for the U.S. HRW crop, the Russian wheat crop, and the Canadian wheat crop.
  • The Baltic Dry Index fell from 718 to 712 on expectations of weak trade growth.
  • The U.S. Dollar Index rose marginally this week from 95.43 to 95.88.
  • Current hard red spring (HRS) price indications are for Northern Spring. Dark Northern Spring is available, but premiums vary. Soft red winter (SRW) indications are for a minimum falling number of 250. Higher minimum specifications will carry a premium.

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